Britain's finance ministry said on Monday it would look at whether the regulation regime around mini-bond investments, used to raise funds for small businesses, is up to scratch following the...
Municipal bonds and related muni bond exchange traded funds are benefiting as U.S. states and cities cut back on new issues. For example, the VanEck Vectors AMT-Free Intermediate Municipal Index ETF (CBOE: ITM) is up nearly 5% this year. Municipal debt and bond-related exchange traded funds have been used as a relatively stable fixed-income stream for [...] The post Supply Constraints…
When it comes to the near- and medium-term trajectory of the market, there were two events that mattered: as we summarized back on June 14, the first major catalyst was last Wednesday's FOMC meeting, where Powell had a choice - lose the "patience" and end the rate hike cycle or stun the market risking a crash, and continue tightening financial conditions. Of course, as everyone knows by now, "…
Amid record high asset prices in virtually everything following last week's dovish FOMC, a fresh concern has emerged: the gaping "alligator jaws" between bond yields and stocks have never been wider, with the latest thrust coming first after Powell's early June admission that an easing cycle is imminent, following by last week's even more dovish FOMC announcement, which confirmed that a July rate…
Authored by Bryce Coward via Knowledge Leaders Capital blog,
On Tuesday of this week we wrote about the four possible scenarios the Fed could adopt in their Wednesday policy decision. In order of most hawkish to most dovish, those scenarios were:
Fed does not cut rates and signals that a rate cut may be appropriate later in the year (read the September meeting). Balance sheet policy…
Goldman Sachs economists said on Sunday they are skeptical of "insurance" U.S. interest rate decreases from the Federal Reserve to forestall possible slowing in U.S. economic growth due to global trade tensions.
There must be something in the Dallas water that makes its Fed presidents immune to the general dogma and brainwashing that emanates from the Marriner Eccles building.
Several years after former Dallas Fed president Dick Fisher repeatedly warned that the Fed's continued "unconventional" policies (which in the past decade have become boringly conventional) and meant simply to push stocks higher (…
Authored by Jeffrey Snider via Alhambra Investments,
If you have nothing left, it can sound like a winning argument but you have to really try hard. In October 2015, with another false dawn dawning on the public, former Federal Reserve Chairman Ben Bernanke wrote and op-ed published in the Wall Street Journal. As had become his habit, it was full of praise – for his own work.
Though he likely…
Authored by John Hasson via CampusReform.org,
Northwestern University’s Center for Diversity and Democracy recently published a poll that lists President Donald Trump as the worst “diversity and inclusion” president in the modern era, seven places below President Franklin D. Roosevelt, who placed Japanese-Americans in internment camps during World War II.
The poll gathered results from 113…
Now that the Fed's capitulation is complete and "Powell has thrown in the towel", bending the knee to Trump, the event baton passes from central banks to politicians this week with the big highlight being the G-20 summit and a potential meeting between President’s Trump and Xi. Prior to that, DB's Craig Nicol writes that there is still the possibility of a confrontational speech on China by Vice…
Bitcoin traded above US$11,000 for the first time in 15 months, recouping more than half of the parabolic increase that captured the attention of mainstream investors before the cryptocurrency bubble burst last year.“The bounce-back of bitcoin has been fairly extraordinary,” said George McDonaugh, chief executive and co-founder of London-based blockchain and cryptocurrency investment firm KR1. “…
News that despite the disappointing jobs growth and weaker earnings growth, the engine of the US economy--consumers--remain resilient helped lift the dollar, which retraced most if not all of the previous week's losses. The dollar rose against all the major and most of the emerging market currencies. The Mexican peso was the best-performing currency, gaining almost 2.5% in the…
The latest Cushman & Wakefield commercial real estate report shows demand for US industrial space collapsed 60% on year in 1Q19, reflecting the global synchronized decline and the deepening trade war.
Cushman & Wakefield's economists warned President Trump's trade war is unraveling complex supply chains around the world that have led to a slump in demand for industrial space. They also…
Authored by Ruchir Sharma, op-ed via The New York Times,
The policies created to pull the world out of recession are still in place, but now they are strangling the global economy...
The United States’ recovery from the Great Recession recently turned 10 years old, matching the longest American expansion since records were first kept in the 1850s. The global recovery will also turn 10, in…
Global stocks rallied on Tuesday and benchmark government bond yields tumbled after European Central Bank President Mario Draghi hinted at economic stimulus, while equities got an extra boost when U.S. President Donald Trump confirmed a meeting with China's president amid the countries' trade dispute.
China’s securities regulator convened a meeting on Sunday asking big brokerages and funds to support their smaller peers, following the recent government take over of Baoshang Bank, said the Wall Street Journal. The meeting summary cited rising risk aversion in money markets after defaults in the bond repurchase market. Some interbank lending rates have moved […]